Question

Pet insurance policies have different payout methods such as percentage of invoice payout and "usual and customary fees" payout. Let's compare those two payout methods. The final invoice for an exploratory surgery is $2,000 and assume the deductible for both policies is zero.

percentage of invoice at 90% = ?
usual and customary fee = $850
Which method is the better deal for the client?

Answer 1

The better deal for the client would be the percentage of invoice payout method as they would receive a higher amount compared to the fixed amount offered by the usual and customary fee payout.

Step-by-step explanation:

When comparing the payout methods of percentage of invoice and usual and customary fees, it is important to consider the specific amounts involved. In this case, the final invoice for the exploratory surgery is $2,000. With a percentage of invoice payout at 90%, the client would receive 90% of the $2,000, which is $1,800. On the other hand, with a usual and customary fee payout of $850, the client would receive a fixed amount of $850.

Comparing these two options, the percentage of invoice payout method would provide a better deal for the client in this scenario, as they would receive a higher amount compared to the fixed amount offered by the usual and customary fee payout.